Qld Revenue Office declines Bowen Coking Coal’s royalty deferment
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The news: Financially distressed miner Bowen Coking Coal has told the market the Queensland Revenue Office rejected its initial proposal, made through subsidiary New Lenton Coal, to defer state royalties payments.
The context: Bowen paused operations at its Burton Mine Complex last month. At the time the company said this was partly due to “depressed coal markets” and “unsustainable” Queensland government royalty fees.
The coal producer is also facing a creditor’s statutory demand from BUMA Australia, which previously delivered mining services for the Burton Mine Complex.
Bowen must pay BUMA $6.8 million within 21 days of the demand or a deemed insolvency event will occur. This followed an initial demand for $15.3 million.
Trading in Bowen shares was suspended on 15 July.
What they said: “While disappointed with this outcome within the context of efforts to restructure the company’s debt, following subsequent discussion with the QRO, the company proposes to submit a revised royalty deferment proposal as soon as practicable,” Bowen said in a statement to the exchange.
The source: ASX
